Eastern District of Texas

BEAUMONT, Texas – A Houston convicted felon has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Bobby Ray Emanis, 40, pleaded guilty to possession of a firearm by a felon and was sentenced to 70 months in federal prison by U.S. District Judge Marcia Crone on February 18, 2025.

According to information presented in court, in September 2023, a deputy with the Liberty County Sheriff’s Office was dispatched to a suspicious vehicle on County Road 2286 in Cleveland.  The vehicle was parked in the roadway with its lights off.  The truck had no front license plate and no registration sticker in the windshield.  Emanis was identified as the driver and informed the deputy there was a sawed-off shotgun behind the seat.  The loaded shotgun was recovered.  Further investigation revealed Emanis was a convicted felon, having been previously convicted of numerous violations in Liberty County, Nacogdoches County, and Harris County.  As a convicted felon, Emanis knew he was prohibited by federal law from owning or possessing firearms or ammunition.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Liberty County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.

###

BEAUMONT, Texas –A Guatemalan national has been sentenced to federal prison for illegally reentering the United States, announced Eastern District of Texas Acting U.S. Attorney Abe McGlothin, Jr.

Carlos Rodriguez-Torres, 42, pleaded guilty to reenty of deported alien and was sentenced to 18 months in federal prison by U.S. District Judge Marcia A. Crone on February 18, 2025.

According to information presented in court, on April 18, 2024, Rodriguez-Torres was found in Lumberton.  Data system checks revealed Rodriguez-Torres is a citizen and national of Guatemala and illegally present in the United States.  Further investigation revealed Rodriguez-Torres had been previously deported or removed to Guatemala on March 14, 2012; October 9, 2012; March 12, 2013; and January 8, 2019.  Rodriguez-Torres had also been previously convicted of unlawful possession of a firearm by an alien on February 20, 2018, in the Eastern District of Texas.

This case was investigated by Homeland Security Investigations and the Lumberton Police Department.  This case was prosecuted by Assistant U.S. Attorney Matt Quinn.

###

PLANO, Texas – A former Guatemalan congressman has been sentenced to 18 years in federal prison for his role in an international drug trafficking conspiracy, announced Acting U.S. Attorney Abe McGlothin, Jr. of the Eastern District of Texas.

Jose Armando Ubico Aguilar, 45, a former senior Republic of Guatemala official, pleaded guilty to ­­­­being involved in an international drug trafficking conspiracy and was sentenced to 216 months in federal prison by U.S. District Judge Michael Truncale on February 11, 2025.

According to information presented in court, Ubico Aguilar served as an elected member of the Congress of the Republic of Guatemala from 2016 to 2024.  He also served as an elected Deputy and was the President of the National Defense Committee of the Congress of the Republic of Guatemala from 2018 to 2023. 

“The sentencing of this corrupt Guatemalan official who brokered and facilitated cocaine shipments into the United States while betraying his country through his partnerships with known drug traffickers and other corrupt officials shows the commitment of the Eastern District of Texas United States Attorney’s Office to identify, disrupt, and dismantle Transnational Criminal Organizations,” said Acting U.S. Attorney Abe McGlothin, Jr.  “I am grateful to our law enforcement partners who worked tirelessly to ensure that Ubico Aguilar will no longer be allowed to hide behind his position of power.”

“The sentencing of this corrupt official who brokered and facilitated cocaine shipments into the United States sends a message to Transnational Criminal Organizations across the world that they will be held responsible for the poison they distribute into the United States,” said Dallas DEA Special Agent in Charge Eduardo A. Chávez.  “This sentence reflects our continued resolve to partner with our international law-enforcement counterparts to fight greed, violence, and public corruption.”

On March 3, 2021, a federal grand jury in the Eastern District of Texas indicted Ubico Aguilar charging him with federal drug trafficking violations.  In May 2024, Ubico Aguilar arrived in the United States and pleaded guilty.  During his plea hearing, Ubico Aguilar admitted his role in the conspiracy, including relaying drug-related information and U.S. currency to another Guatemalan official on behalf of an international drug trafficker. These actions resulted in the safe passage of at least 450 kilograms of cocaine through Guatemala for distribution in the United States.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the North Texas Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force Group Two; the U.S. Drug Enforcement Administration’s Dallas Division; the DEA’s Guatemala City Country Office and the DEA’s San Jose (Costa Rica) Country Office; the FBI’s Dallas Field Office; the Homeland Security Investigation’s Dallas and Guatemala Field Offices; the U.S. Marshals Service’s Dallas Field Office; and Customs and Border Protection’s San Diego Field Office. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also provided significant assistance in securing the surrender of Ubico Aguilar.  

This case was prosecuted by Assistant U.S. Attorney Christopher Eason.                                        

SHERMAN, Texas – A Denton woman has been sentenced to over 19 years in federal prison for her role in a fatal fentanyl overdose in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Tiffane Chantial Volz, 37, pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and was sentenced to 235 months in federal prison by U.S. District Judge Amos 
Mazzant on February 18, 2025.

Co-defendant, Courtney Green, 28, also of Denton, pleaded guilty to the same charges and was sentenced to 240 months in federal prison on January 30, 2025, by Judge Mazzant.

According to information presented in court, on April 15, 2023, law enforcement officers responded to a reported overdose death on Heatherton Drive in Celina, Texas.  Autopsy results determined the victim died of pulmonary congestion and edema due to the toxic effects of fentanyl.  An investigation revealed emails and text messages between the victim and Green discussing the distribution of prescription pills.  Further investigation determined Volz to be Green’s source of supply.

The Drug Enforcement Administration (DEA) has issued a Public Safety Alert warning Americans of the alarming increase in the lethality and availability of fake prescription pills containing fentanyl and methamphetamine.  The Public Safety Alert coincides with the launch of DEA’s One Pill Can Kill Public Awareness Campaign to educate the public of the dangers of counterfeit pills and urges all Americans to take only medications prescribed by a medical professional and dispensed by a licensed pharmacist. The campaign aims to raise public awareness of a significant nationwide surge in fake pills that are mass-produced by criminal drug networks in labs, deceptively marketed as legitimate prescription pills, and are killing unsuspecting Americans at an unprecedented rate. For more information, please visit https://www.dea.gov/onepill.

This case was investigated by the Celina Police Department, Denton County Sheriff’s Office, U.S. Drug Enforcement Administration, and Collin County Medical Examiner’s Office.  This case was prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

###

BEAUMONT, Texas – A sex offender living in Beaumont was sentenced to federal prison for failing to register in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Lequinte Dangelo Johnson, 37, pleaded guilty to failure to register as a sex offender and was sentenced to 24 months in federal prison by U.S. District Judge Marcia A. Crone on February 13, 2025.

According to information presented in court, in 2006, in Riverside, California, Johnson was convicted of lewd or lascivious acts with a child under 14 years old.  As part of his sentence, Johnson was required to register as a sex offender.  In July of 2023, the U.S. Marshals Service in Beaumont received information containing Johnson’s updated sex offender registration paperwork from Arizona.  The paperwork indicated that Johnson had registered as homeless with a “RESIDENCE OR PHYSICAL LOCATION” in Glendale, Arizona.  However, he listed a “409” cell phone number as his contact information. Through information found on social media, it was determined that Johnson was living in Beaumont where he was eventually found living in a storage unit, although never having registered in Texas.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Rachel Grove.

###

BEAUMONT, Texas – An Orange, Texas, man has been sentenced for a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr. today.

Alton Wayne Wallace, 31, pleaded guilty to possession of a firearm by a prohibited person and was sentenced to 63 months in federal prison by U.S. District Judge Marcia Crone on February 13, 2025.

According to information presented in court, just before midnight on October 27, 2023, law enforcement officers responded to a report of loitering behind a restaurant on 16th Street in Orange. When officers arrived, they found Wallace sitting on a gun in the passenger seat of the car that was described in the call. Another pistol was found on the floorboard in front of Wallace. Further investigation revealed that Wallace was previously convicted of carjacking in Beaumont.  A federal grand jury indicted Wallace on May 1, 2024. Under federal law, convicted felons are prohibited from owning or possessing firearms or ammunition.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Orange Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.

###

BEAUMONT, Texas – A Lufkin man has been sentenced for federal drug trafficking and firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Bradley Skyler Bryan, 27, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a felon and was sentenced to 175 months in federal prison by U.S. District Judge Marcia Crone on February 13, 2025.

According to information presented in court, in April 2024, Bryan was stopped for a traffic violation in Lufkin.  During the stop, the officer smelled marijuana coming from the vehicle. A search of the vehicle revealed marijuana, vape pens, pills, and a large amount of methamphetamine.  A concealed handgun was found on Bryan.  Further investigation revealed Bryan had twelve prior felony convictions, including numerous felony convictions involving narcotics and firearms.

A search warrant was obtained for Bryan’s residence where officers located methamphetamine, cocaine, ammunition, a cell phone hidden inside of a wall, a camera surveillance system, and various other items typically used to distribute illegal drugs. As a convicted felon, Bryan is prohibited by federal law from owning or possessing firearms or ammunition.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Texas Department of Public Safety – Criminal Investigations Division; Lufkin Police Department; and U.S. Drug Enforcement Administration.  This case was prosecuted by Assistant U.S. Attorney Donald Carter.

###

SHERMAN, Texas – A Collin County man and a Floridian have been convicted of federal violations related to a COVID fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Cord Dean Newman, 47, of Homosassa, Florida, and Eric “Phoenix” Marascio, 53, of Allen, were found guilty of conspiracy to commit wire fraud and conspiracy to commit money laundering following a four-day trial before U.S. District Judge Jeremy D. Kernodle on February 6, 2025.

According to information presented in court, Newman, a Hollywood stuntman, and Marascio, an author and baker, were convicted for their involvement in a multimillion-dollar loan fraud and money laundering conspiracy. The evidence at trial showed they were involved in a scheme to defraud lenders and the Small Business Administration’s (SBA’s) Paycheck Protection Program (PPP) by applying for and obtaining fraudulent PPP loans during the COVID-19 pandemic.  Once Newman and Marascio obtained the loans, they used the funds in a manner inconsistent with the program, including to invest in foreign exchange currency markets, to purchase vehicles, and for various other non-business-related expenditures.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal law enacted in March 2020 and designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP).  The Economic Injury Disaster Loan (EIDL) Program was an SBA program that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. 

The defendants each face up to 20 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.  This case is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.

###

BEAUMONT, Texas – A Beaumont convicted felon has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Demond Maurice Barnes, 46, pleaded guilty to being a felon in possession of a firearm was sentenced to 33 months in federal prison by U.S. District Judge Marcia A. Crone on February 7, 2025.

According to information presented in court, on June 15, 2023, law enforcement officers responded to a minor automobile accident in Port Arthur.  While in route, officers received information from callers that one of the drivers had a firearm in his possession. Upon arrival, officers observed a red Ford Mustang that had backed into another vehicle.  The driver of the Mustang, identified as Barnes, was unconscious in the driver’s seat, unresponsive and foaming at the mouth.  When Barnes was removed from the vehicle, officers discovered he was sitting on a semi-automatic pistol.  Further investigation revealed Barnes to be a convicted felon having been previously convicted in Louisiana of possession of cocaine and being a felon in possession of a firearm.  As a convicted felon, Barnes was prohibited by federal law from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.

###

BEAUMONT, Texas – A large-scale investigation has concluded with multiple individuals being sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

According to information presented in court, beginning in 2021, law enforcement investigated a drug trafficking organization operating throughout East Texas, identifying Edgar Garcia, Jr. as the primary distributor.  Law enforcement began conducting operations to identify numerous individuals receiving methamphetamine from Garcia. During the investigation, law enforcement executed residential search warrants, purchased methamphetamine and/or firearms directly from Garcia and other members of his drug trafficking organization, and directed traffic stops to intercept narcotics and firearms being transported for distribution. Ultimately, multiple kilograms of methamphetamine were seized during the operation.

Law enforcement was also able to obtain almost a dozen firearms from various individuals in the organization. The firearms were either sold as part of narcotics transactions or being used to guard the illegal drugs.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The individuals sentenced to federal prison during the investigation and prosecution of the drug trafficking organization are:

Edgar Garcia Jr., 26, of Nacogdoches, sentenced to 151 months;

Justin Michael Sanchez, 33, of Nacogdoches, sentenced to 235 months;

Beverly Hurst, 26, of Center, sentenced to 151 months;

Jason Clepper, 36, of Goliad, sentenced to 150 months;

Blake Trahan, 29, of Center, sentenced to 48 months;

Austin Yarbrough, 32, of Timpson, sentenced to 188 months;

Laddarus Perkins, 40, of Timpson, sentenced to 135 months;

Jeanese Fenley, 43, of Timpson, sentenced to 70 months; and

Koury Nowell, 49, of Gary City, sentenced to 33 months.

This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Texas Department of Public Safety; Shelby County Sheriff’s Office; Nacogdoches County Sheriff’s Office; and Panola County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Donald S. Carter and Lucas Machicek.

###

BEAUMONT, Texas – A Vidor convicted felon has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Dennis Lee Kelley, 32, pleaded guilty to being a felon in possession of a firearm was sentenced to 46 months in federal prison by U.S. District Judge Marcia A. Crone on February 7, 2025.

According to information presented in court, on July 27, 2023, Kelley was arrested near Hwy 105 in Beaumont pursuant to an active warrant for a parole violation.  At the time of his arrest, a pistol was discovered in the vehicle he was driving. As a convicted felon, Kelley was prohibited by federal law from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.

###

BEAUMONT, Texas – A Little Rock, Arkansas, man has been sentenced to federal prison for possessing a machinegun conversion device in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Jajuan Lee Bonds, 22, pleaded guilty to possession of a machinegun and was sentenced to 33 months in federal prison by U.S. District Judge Marcia A. Crone on February 7, 2025.

According to information presented in court, on July 21, 2022, an officer with the Corrigan Police Department conducted a traffic stop on a vehicle being driven by Bonds. The officer observed what appeared to be marijuana in a clear plastic baggie in the vehicle. During a search of the vehicle, the officer located a firearm outfitted with a machinegun conversion device, commonly referred to as a “Glock Switch”. The modified handgun had been previously reported stolen. Federal law defines a machinegun as a weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corrigan Police Department and prosecuted by Special Assistant U.S. Attorney Tommy Coleman.

###

Lockheed Martin Corporation (LMC) has agreed to pay $29.74 million to resolve False Claims Act allegations of defective pricing on contracts for F-35 military aircraft. This payment is in addition to $11.3 million that LMC previously paid to the Department of Defense (DOD) for the same undisclosed cost and pricing data on some of the same contracts. LMC, headquartered in Bethesda, Maryland, is one of the world’s largest defense contractors.

According to court documents, between 2013 and 2015, LMC inflated pricing proposals it submitted to obtain contracts for the F-35 by failing to provide to DOD’s F-35 Joint Program Office (JPO) accurate, complete, and current cost and pricing data during the negotiations leading to the award of five contracts for the production or sustainment of the F-35. The United States alleged that LMC had knowledge of suppliers’ cost or pricing data that it did not disclose to the JPO in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts — where there is no price competition — by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. The United States alleged that had LMC provided accurate, complete, and current cost and pricing data, JPO would have awarded the contracts in lower amounts.

“Those who do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will pursue contractors that knowingly misuse taxpayer funds.”

“The United States relies on contractors such as Lockheed Martin to provide accurate, complete, and current information, including pricing data, when negotiating contracts with the government,” said Acting U.S. Attorney Abe McGlothin, Jr, for the Eastern District of Texas. “If a contractor fails to do so, and that failure affects the value of its contract with the government, the Eastern District of Texas will take steps to ensure that the contractor is held accountable.”

“The F-35 program is at the heart of our nation’s defense,” said Air Force Lt. Gen. Mike Schmidt, Director and Program Executive Officer, F-35 Joint Program Office. “The F-35 Joint Program Office will continue to insist on integrity and honesty in all business transactions. We demand 100% accountability for every dollar spent on this program on behalf of U.S. taxpayers and international customers and taxpayers.”

“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) will methodically pursue all alleged violations of the False Claims Act and Truth in Negotiations Act,” said Principal Deputy Director James R. Ives of DCIS. “Today’s outcome reflects the unwavering commitment of DCIS and our investigative partners to hold accountable those who bilk the American taxpayer by perpetrating fraud against the DOD.”

“Overinflation of production and sustainment costs for an aircraft critical to our national defense undermines operational readiness and erodes the trust placed in the Department of Defense by the American people,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS and our investigative partners remain steadfast in our commitment to investigating entities that compromise the integrity of government contracts.”

The settlement derives from allegations originally brought in a lawsuit filed in the Eastern District of Texas by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. The qui tam case is captioned U.S. ex rel. Patrick Girard v. Lockheed Martin Corp., No. 4:17-CV-147 (EDTX). The relator’s share of the settlement has not yet been determined.

This settlement was the result of a coordinated effort between the Civil Division, Commercial Litigation Branch, Fraud Section of the Department of Justice, and the U.S. Attorney’s Office for the Eastern District of Texas with assistance from JPO, DCIS, NCIS, and the Defense Contract Audit Agency.

Trial Attorney Arnold M. Auerhan of the Justice Department’s Civil Division and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter.

The claims resolved by the settlement are allegations only, and there has been no determination of liability

BEAUMONT, Texas – A Buna man has been convicted of federal firearms and drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Leotis Cornelius McMahon, 48, was convicted of being a felon in possession of a firearm and possession of methamphetamine with intent to distribute following a three-day trial before U.S. District Judge Marcia A. Crone on February 5, 2025.

According to information presented in court, in 2023, law enforcement was investigating McMahon for distributing narcotics within Southeast Texas.  After a prolonged surveillance operation, a traffic stop was conducted on McMahon where he was found to be transporting large amounts of marijuana, cocaine, and nearly a kilogram of “actual” methamphetamine.  After the traffic stop, a search warrant for McMahon’s residence in Buna was obtained and executed.  Law enforcement discovered materials used in the distribution of narcotics as well as four separate firearms, one being an AR style pistol. One of the firearms seized from McMahon’s residence was stolen.

McMahon was operating what was described as a mobile illegal drug shop.  The amounts of controlled substances, along with the tools used in trafficking such as scales and bags used for distribution, seized from McMahon indicated that he was dealing significant quantities of drugs for profit.

Further investigation revealed McMahon is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.

McMahon was indicted by a federal grand jury on July 10, 2024.  He faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Texas Department of Public Safety – Criminal Investigations; Lumberton Police Department; Jasper County Sheriff’s Office; Beaumont Police Department; U.S. Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms, and Explosives.  This case is being prosecuted by Assistant U.S. Attorneys Jonathan Lee and John B. Ross.

###

SHERMAN, Texas – A Denton man has been sentenced to 20 years in federal prison for his role in a fatal fentanyl overdose in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Courtney Green, 28, pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl.  Green was sentenced to 240 months in federal prison on January 30, 2025, by U.S. District Judge Amos Mazzant.

Co-defendant Tiffane Chantial Volz, 37, also of Denton, pleaded guilty to the same charge and is scheduled to be sentenced by Judge Mazzant on February 18, 2025.

According to information presented in court, on April 15, 2023, law enforcement officers responded to a reported overdose death on Heatherton Drive in Celina, Texas.  Autopsy results determined the victim died of pulmonary congestion and edema due to the toxic effects of fentanyl.  An investigation revealed emails and text messages between the victim and Green discussing the distribution of prescription pills.  Further investigation determined Volz to be Green’s source of supply.

The Drug Enforcement Administration (DEA) has issued a Public Safety Alert warning Americans of the alarming increase in the lethality and availability of fake prescription pills containing fentanyl and methamphetamine.  The Public Safety Alert coincides with the launch of DEA’s One Pill Can Kill Public Awareness Campaign to educate the public of the dangers of counterfeit pills and urges all Americans to take only medications prescribed by a medical professional and dispensed by a licensed pharmacist. The campaign aims to raise public awareness of a significant nationwide surge in fake pills that are mass-produced by criminal drug networks in labs, deceptively marketed as legitimate prescription pills, and are killing unsuspecting Americans at an unprecedented rate. For more information, please visit https://www.dea.gov/onepill.

This case was investigated by the Celina Police Department, Denton County Sheriff’s Office, U.S. Drug Enforcement Administration, and Collin County Medical Examiner’s Office.  This case was prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

###

Pursuant to the Vacancies Reform Act, First Assistant United States Attorney Abe McGlothin, Jr., has been named the Acting United States Attorney for the Eastern District of Texas following the departure of U.S. Attorney Damien M. Diggs on January 21, 2025.                                   

BEAUMONT, Texas – A Beaumont man has been sentenced to 10 years in federal prison for possessing fentanyl in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Joe Anthony Garcia, 28, pleaded guilty to possession with intent to distribute fentanyl and was sentenced to 120 months in federal prison by U.S. District Judge Marcia A. Crone on January 23, 2025.

According to information presented in court, on May 19, 2022, law enforcement officers responded to a 9-1-1 call regarding a shooting on Avenue E in Beaumont.  Officers found at least 16 bullet holes in the front door of the home and Garcia, a resident of the home, inside with gunshot wounds to his chest and hip.  Officers also observed narcotics throughout the house in plain view.  A search warrant was obtained, and additional narcotics were discovered, including over 1,200 pills in the bathroom.  The pills were analyzed by the crime lab and found to contain approximately 156 grams of fentanyl.

The Drug Enforcement Administration (DEA) has issued a Public Safety Alert warning Americans of the alarming increase in the lethality and availability of fake prescription pills containing fentanyl and methamphetamine.  The Public Safety Alert coincides with the launch of DEA’s One Pill Can Kill Public Awareness Campaign to educate the public of the dangers of counterfeit pills and urges all Americans to take only medications prescribed by a medical professional and dispensed by a licensed pharmacist. The campaign aims to raise public awareness of a significant nationwide surge in fake pills that are mass-produced by criminal drug networks in labs, deceptively marketed as legitimate prescription pills, and are killing unsuspecting Americans at an unprecedented rate. For more information, please visit https://www.dea.gov/onepill.

This case was investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration.  This case was prosecuted by Assistant U.S. Attorney Matt Quinn.

###

A Texas defendant pleaded guilty yesterday to a misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits a person from intentionally damaging or destroying the property of a facility because that facility provides reproductive health services.

According to court documents, on May 7, 2022, Ethan Skorick, 23, intentionally damaged the property of Loreto House and Woman to Woman pregnancy resource centers located in Denton, Texas, by defacing the clinics’ buildings, doors and security cameras with spray paint. Specifically, Skorick vandalized the buildings with words including, “NOT A CLINIC,” “FORCED BIRTH IS MURDER,” and “PRO BIRTH [does not equal] PRO LIFE.”

“Vandalizing facilities, including pregnancy resource centers, that provide reproductive health care has no place in the national discourse on reproductive health.  Such conduct is unacceptable and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will enforce the FACE Act to protect all providers of reproductive health services, and their patients.”

“This defendant sought to prevent fellow citizens from exercising rights protected by law,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “People cannot resort to destroying property in an effort to intimidate or prevent others from engaging in lawful activity simply because they disagree with the law.   This office will remain dedicated to protecting the rights of all Americans to safely access medical services and ensuring providers can perform their duties freely.”

“Under federal law the FBI is tasked with defending civil rights in the United States and will work with our partners to ensure those rights are protected,” said Special Agent in Charge R. Joseph Rothrock of the Dallas FBI Field Office. “Anyone who intentionally damages property to prevent individuals from seeking to obtain or provide reproductive health services will be held accountable for their actions.”

The FBI Dallas Field Office, Frisco Resident Agency are investigating the case.  

Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Executive Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas are prosecuting the case.

BEAUMONT, Texas – A Jasper man has been sentenced to 51 months in federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Bradley Joseph LeBlanc, 25, pleaded guilty to possession of an unregistered firearm and was sentenced to 51 months in federal prison by U.S. District Judge Marcia A. Crone on January 16, 2025.

According to information presented in court, on November 15, 2023, law enforcement officers executed a search warrant at LeBlanc’s residence in Jasper, where they discovered a fully automatic machine gun which had previously been reported stolen from a Waller County law enforcement officer’s vehicle. Further investigation revealed there were no firearms records for LeBlanc with the National Firearms Registration and Transfer Records (NFRTR).

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Jasper Police Department, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant U.S. Attorney Matt Quinn.

###

TYLER, Texas – A former Texas hospital chief executive officer has been sentenced to 36 months in federal prison for conspiring to violate the Anti-Kickback Statute, announced U.S. Attorney Damien M. Diggs.

Jeffrey Paul Madison, 49, of Burnet, Texas; Susan L. Hertzberg, 66, of New York, New York; Matthew John Theiler, 58, of Pinehurst, North Carolina; David Weldon Kraus, 66, of Maryville, Tennessee; and Thomas Gray Hardaway, 52, of San Antonio, Texas, were found guilty by a jury on November 30, 2023, following a seven-week-long trial before U.S. District Judge Jeremy D. Kernodle.

Madison was sentenced to 36 months in federal prison by Judge Kernodle on January 15, 2025.  Madison also agreed to pay $5,343,630 to resolve allegations under the False Claims Act involving illegal payments to physicians for laboratory referrals in violation of the Anti-Kickback Statute.

On November 20, 2024, Theiler was sentenced to 18 months in federal prison and ordered to pay a $75,000 fine.  On December 5, 2024, Kraus was sentenced to 22 months in federal prison and ordered to pay a $25,000 fine. 

On January 12, 2022, Hertzberg, Theiler, Kraus, Hardaway, and Madison, as well as Jeffrey Paul Parnell, 56, of Tyler; Laura Spain Howard, 50, of Lucas; Todd Dean Cook, 59, Ocala, Florida; William Todd Hickman, 61, of Anna; Christopher Roland Gonzales, 48, of Fairview; Ruben Daniel Marioni, 40, of Spring; Jordan Joseph Perkins, 40, of Conroe; Elizabeth Ruth Seymour, 42, of Corinth; Linh Ba Nguyen, 60, of Dallas; Thuy Ngoc Nguyen, 56, of Dallas; Joseph Gil Bolin, of Dallas; Heriberto Salinas, 64, of Dallas; and Hong Davis, 57, of Copper Canyon, were indicted for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.  The statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs.  The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to rural hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to arrange for or recommend the ordering of services from rural hospitals and an affiliated lab.

Two rural Texas hospitals, Little River Healthcare (LRH) based in Rockdale, and Stamford Memorial Hospital based in Stamford, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in advanced cardiovascular lipid testing.  For a fee, BHD processed the blood tests while the hospitals billed the tests to insurers as hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory.  The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas.  In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals.  Pursuant to the kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly.  BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions.

Parnell, Howard, Cook, Hickman, Gonzales, Marioni, Perkins, Seymour, Thuy Nguyen, Salinas, and Davis pleaded guilty prior to trial.

In January 2022, Robert O’Neal, 66, of Beaumont, pleaded guilty to conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and to conspiracy to commit money laundering.  His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to the rural hospitals and BHD.  O’Neal also had kickback proceeds laundered on his behalf and, at various times, obtained proceeds from the kickback conspiracy.

In July 2023, Peter J. Bennett, of Houston, was convicted of money laundering conspiracy, money transmitting conspiracy, and perjury.  According to information presented in court, Bennett created sham trusts and shell corporations through which he laundered at least $2,724,080.41 in healthcare kickback proceeds.  Bennett used his law firm’s Interest on Lawyers Trust Account (IOLTA), operating account, and a personal bank account to launder and transmit the kickback proceeds.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs.  Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Defense – Defense Criminal Investigative Service (DCIS) with assistance from the U.S. Secret Service and the U.S. Department of Commerce - Export Enforcement.  It was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, Lucas Machicek, and Robert Austin Wells.

###

BEAUMONT, Texas – A Romanian national convicted of plotting to traffic hundreds of kilograms of cocaine from the United States in a scheme that also included money laundering, arms trafficking, and an attempt to assassinate rival gang members, was sentenced to 25 years in federal prison in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Marius Lazar, 51, of Bucharest, Romania, was sentenced to 300 months in federal prison by U.S. District Judge Marcia A. Crone on January 15, 2025.

According to court documents and evidence presented at trial, Lazar was a “founding member” of his local chapter of the Hells Angels Motorcycle Club, a transnational outlaw motorcycle gang that was founded in the United States and is now active on six continents. Through his relationship with a fellow Hells Angels member from New Zealand, Lazar joined a conspiracy to purchase more than 400 kilograms of cocaine from a person in the United States, who the conspirators believed was a powerful drug trafficker but who was actually an undercover agent of the Drug Enforcement Administration (DEA). As part of his negotiations for the cocaine purchase, Lazar also solicited the undercover agent to kill two members of a rival motorcycle club in Romania, and offered to supply the undercover with rifles, grenades, armored vehicles, and other military-grade equipment that Lazar understood would be used against police officers in the United States. Members of the conspiracy sent nearly $1 million to the United States, via bank wires and Bitcoin transfers, as payment for the drugs and murders.

On November 17, 2023, a federal jury in Beaumont convicted Lazar of conspiracy to commit racketeering, conspiracy to import cocaine into the United States, and conspiracy to commit money laundering.

Co-defendants Murray Michael Matthews and Marc Patrick Johnson remain fugitives.

The DEA, Homeland Security Investigations, U.S. Marshals Service, and Internal Revenue Service – Criminal Investigations investigated the case, with significant assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorney Christopher Rapp for the Eastern District of Texas, Assistant U.S. Attorney Conor Mulroe, formerly of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and currently for the U.S. Attorney’s Office District of Columbia, and VCRS Trial Attorney Jared Engelking prosecuted the case.

The Justice Department’s Office of International Affairs worked with law enforcement partners in Romania to secure the arrest and extradition of Lazar.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.  

###

BEAUMONT, Texas – A Hamshire convicted felon has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Willie Dean Nelson, III, 32, pleaded guilty to possession of a firearm by a prohibited person and was sentenced to 105 months in federal prison by U.S. District Judge Marcia A. Crone on January 14, 2025.

According to information presented in court, on October 26, 2022, law enforcement officers responded to a Beaumont Fastlane convenience store robbery.  The caller gave the description of the vehicle and witnesses described the subject and advised he was armed.  The vehicle was located nearby, and Nelson was observed exiting the vehicle.  A pistol was discovered laying a few feet in front of the vehicle.  Nelson admitted to throwing the firearm from the vehicle when he saw the officers because he was a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Beaumont Police Department and the FBI and prosecuted by Assistant U.S. Attorney Rachel Grove.

###

PLANO, Texas – United States Attorney Damien M. Diggs has announced that he will resign as the chief federal law enforcement officer for the Eastern District of Texas effective 11:59 p.m. on January 21, 2025.  U.S. Attorney Diggs was nominated by President Joseph R. Biden on February 2, 2023, and unanimously confirmed by the U.S. Senate on May 4, 2023.  Mr. Diggs was sworn in as U.S. Attorney on May 7, 2023.     

“I will forever be grateful to President Biden, Attorney General Garland, and Senators John Cornyn and Ted Cruz for having confidence in me to serve our nation and the citizens of the Eastern District of Texas,” said U.S. Attorney Diggs.  “This office and our committed local, state, and federal law enforcement partners go above and beyond daily to keep our communities safe, uphold the rule of law, and protect the civil rights of the citizenry.  I count it a blessing to have assisted in these efforts.”

In a message to his office and law enforcement partners, U. S. Attorney Diggs said:

It has been an honor and a privilege leading this District for the past two years.  I can proudly say that the Eastern District, the state of Texas, and the United States are safer because of the great work being done here.  During my tenure as United States Attorney, the work of this Office has reached five continents in the pursuit of justice and has remained a leader in the fight against international criminal organizations, while simultaneously remaining an active and engaged partner in our communities in north- and southeastern Texas.

U.S. Attorney Diggs led an office of nearly 100 employees, including 50 prosecutors, across six fully staffed offices in Beaumont, Lufkin, Plano, Sherman, Texarkana, and Tyler.  The district covers 43 counties stretching from the Gulf of Mexico to the Oklahoma border, covering 29,000 square miles, and is home to roughly 4.5 million people.  He focused the office’s efforts on public safety, fighting fraud, waste and abuse, civil rights, and community outreach.

Under U.S. Attorney Diggs’ leadership, the office achieved noteworthy successes in criminal matters, obtaining notable victories in crimes related to gun and gang violence, firearms trafficking, drug trafficking, public corruption, healthcare fraud, white collar, cybercrime, national security issues, child exploitation, and human trafficking issues.  U.S. Attorney Diggs also expanded the office’s Project Safe Neighborhoods program by creating separate PSN programs in Beaumont, Longview, and Plano; established Operation Purple Ribbon—a domestic violence initiative targeting domestic violence abusers for federal prosecution; surged investigations and prosecutions of commercial robberies; stood up a carjacking task force in the spring of 2024, which has resulted in a significant decrease in carjackings district-wide; and partnered with the other Texas U.S. Attorneys and the ATF in the summer of 2024 in launching Operation Texas Kill Switch—a statewide initiative targeting illegal machinegun conversion devices, commonly referred to as “switches.”  The initiative has raised public awareness and resulted in multiple prosecutions.  

U.S. Attorney Diggs continued the district’s prioritization of prosecuting large-scale drug trafficking organizations, primarily through DOJ’s Organized Crime Drug Enforcement Task Force (OCDETF) program. With an emphasis on the targeting of international drug cartels, U.S. Attorney Diggs oversaw one of the nation’s most productive extradition practices, particularly with respect to Colombia and Guatemala. U.S. Attorney Diggs’ team obtained a 25-year sentence against a Colombian trafficker who coordinated maritime shipments of cocaine through Central America; extradited the leader of the Los Pochos drug trafficking organization which supplies multi-ton quantities of cocaine to trafficking cells in Guatemala and Mexico; and successfully prosecuted a former senior Republic of Guatemala official whose assistance on behalf of an international drug trafficker resulted in the safe passage of at least 450 kilograms of cocaine through Guatemala for distribution in the United States.

The office’s Civil Division experienced record successes under U.S. Attorney Diggs’ leadership.  For instance, the Civil Division negotiated a $97 million settlement with Walgreens to resolve allegations that it billed government payors for prescriptions that were never dispensed. U.S. Attorney Diggs also oversaw a $21.75 million settlement with Medisca, Inc. to resolve allegations that the company submitted false and inflated average wholesale prices for ingredients used in compounded prescriptions. U.S. Attorney Diggs also demonstrated a commitment to holding individuals, not just corporations, responsible for defrauding the government. After obtaining a settlement with the bankrupt fintech company Kabbage, Inc. to receive a total unsubordinated general unsecured claim in the bankruptcy proceeding of up to $120 million, U.S. Attorney Diggs approved the United States’ intervention against three former executives of Kabbage, Inc. Under his leadership, the Civil Division also obtained a settlement with the CEO of a Texas hospital, who paid $5.3 million to resolve allegations under the False Claims Act involving illegal payments to physicians for laboratory referrals in violation of the Anti-Kickback Statute.   

U.S. Attorney Diggs dedicated himself to protecting the civil rights of citizens of the Eastern District of Texas. He oversaw the district’s partnership with the other Texas U.S. Attorney’s Offices and the Justice Department’s Civil Rights Division to investigate allegations of civil rights violations at Texas Juvenile Justice Department (“TJJD”) facilities across the state. The investigation found that TJJD violated the rights of children housed in those facilities.

The Appellate Division also had notable victories under U.S. Attorney Diggs’ leadership.  For instance, the Appellate Division persuaded the Fifth Circuit to affirm the 90-month sentence of a Colombian lawyer who falsely told drug traffickers that, for a fee, she could prevent their extradition to the United States; successfully defended the federal-programs bribery convictions of a local politician and her spouse—a real estate developer; and urged the Fifth Circuit to uphold the convictions of Aryan Circle prison gang members who were convicted of RICO conspiracy for their participation in various acts of violence and drug distribution.  

As U.S. Attorney, Mr. Diggs has prioritized his office’s engagement in the community, particularly when it comes to fentanyl awareness presentations where prosecutors across the district have given One Pill Can Kill presentations to students across the district.  U.S. Attorney Diggs, along with the other Texas U.S. Attorneys, met with state education leaders in Austin to provide fentanyl-related information and awareness that could be used in schools state-wide.   Additionally, in partnership with the Justice Department’s Community Relations Service, U.S. Attorney Diggs has spearheaded civil rights and hate crimes prevention through United Against Hate presentations across the district designed to raise community awareness about hate crimes, hate incidents and discrimination, and establishes connections between law enforcement and ethnic communities and religious groups, particularly those with members who have been reluctant to contact law enforcement for help.

Beyond leading in the Eastern District of Texas, U.S. Attorney Diggs was a member of the Attorney General Advisory Subcommittees on Violent Crime, White Collar/Fraud, Cybercrime/Intellectual Property, and Terrorism/National Security. He also served a member of a Working Group dealing with FIRREA whistleblower issues.  

Pursuant to the Vacancies Reform Act, First Assistant U.S. Attorney Abe McGlothin Jr. will succeed Mr. Diggs as the Acting U.S. Attorney for the Eastern District of Texas until a successor is nominated by the President and confirmed by the United States Senate.

Learn more about the district at: https://www.justice.gov/usao-edtx.  

BEAUMONT, Texas – A Beaumont man has been sentenced for drug trafficking in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Francisco Manuel Magdaleno, 41, was convicted at trial of conspiracy to distribute and possession with intent to distribute methamphetamine.  Magdaleno was sentenced to 265 months in federal prison by U.S. District Judge Marcia A. Crone on January 7, 2025.

According to information presented in court, from February 2019 through May 2022, Magdaleno was involved in a conspiracy to traffic methamphetamine from Michoacán, Mexico, through Beaumont, Texas, and into areas throughout the United States.  More than 20 known co-conspirators were a part of the conspiracy that included the Magdaleno drug trafficking organization.

The investigation revealed that Magdaleno played a central role in obtaining more than ten thousand grams of methamphetamine and distributing that methamphetamine to areas throughout Texas, Louisiana and Florida. Evidence obtained at trial revealed that Magdaleno was also a multi-kilogram distributor of cocaine.

This is an Organized Crime Drug Enforcement Task Forces (OCDETF) case.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This case was investigated by the U.S. Drug Enforcement Administration, Beaumont HIDTA Task Force, Beaumont Police Department, Texas Department of Public Safety-CID, Jefferson County Sheriff’s Office, and Chambers County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorneys Jonathan Lee and Rachel Grove.

###

BEAUMONT, Texas – A Port Arthur convicted felon has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Kemien Sharod Taylor, 51, pleaded guilty to possession of a firearm by a prohibited person and was sentenced to 57 months in federal prison by U.S. District Judge Marcia A. Crone on December 19, 2024.

According to information presented in court, in November of 2023, law enforcement officers executed a search warrant at a residence on 12th Street in Port Arthur, where Taylor had previously sold crack cocaine. During the search, Taylor directed officers to a firearm in a bedroom closet.  The firearm had been reported stolen in Houston.  In addition to the stolen firearm, detectives also located a quantity of crack cocaine and drug paraphernalia to include Pyrex mixing bowls with cocaine residue and digital scales with cocaine residue.  Further investigation revealed Taylor to be a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant U.S. Attorney Matt Quinn.

###

BEAUMONT, Texas – A Houston convicted felon has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Derrick Wayne Roberson, 32, pleaded guilty to possession with intent to distribute fentanyl and possession of a firearm by a prohibited person and was sentenced to 235 months in federal prison by U.S. District Judge Marcia A. Crone on December 19, 2024.

According to information presented in court, beginning in 2023, law enforcement conducted an investigation into a drug trafficking organization operating out of Houston and into East Texas. Roberson was found to be a member of that organization and a distributor of methamphetamine, heroin, a fentanyl analogue, as well as a firearms trafficker. As a member of the organization Roberson would transport contraband from the Houston area to East Texas and distribute the contraband.  Over the course of the investigation, Roberson sold not only large amounts of methamphetamine, but also fentanyl and a firearms, including a firearm equipped with a “glock switch.”  A glock switch allows for a handgun to be fired as a fully automatic weapon, making it a machine gun.  Roberson has previous felony convictions for robbery, felony theft, and evading law enforcement with a motor vehicle.  As a felon, he is prohibited from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the U.S. Drug Enforcement Administration, the Texas Department of Public Safety – Criminal Investigations, and the Angelina County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Donald S. Carter.

###

A Texas physician pleaded guilty today in connection with his role in a $5.5 million over-the-counter (OTC) COVID-19 test fraud scheme.

According to court documents, Mark Mazzare M.D., 57, of Tyler, purchased Medicare beneficiary identifiers (BINs) that were used to bill Medicare millions of dollars for OTC COVID-19 test kits, many of which had not been requested by the beneficiaries. Mazzare entered into a sham agreement with a purported marketer to conceal the purchase of BINs as “lead packages,” which in reality consisted of BINs and fraudulently generated audio recordings purporting to be the voices of the beneficiaries requesting the OTC COVID-19 tests. Mazzare caused OTC COVID-19 tests to be shipped to Medicare beneficiaries whose BINs had been purchased, regardless of whether the Medicare beneficiaries had requested or needed the tests. From in or around November 2022 to in or around June 2023, Mazzare caused more than $5.5 million in claims to be submitted to Medicare for OTC COVID-19 tests that were medically unnecessary and ineligible for reimbursement. Medicare paid approximately $3.44 million on those claims.

Mazzare pleaded guilty to conspiracy to defraud the United States and to purchase, sell, and distribute Medicare beneficiary identification numbers. He faces a maximum penalty of five years in prison. A sentencing hearing will be set at a later date, when a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Damien M. Diggs for the Eastern District of Texas; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; and Inspector-in-Charge Kai Pickens of the U.S. Postal Inspection Service (USPIS) Fort Worth Division made the announcement.

HHS-OIG and USPIS are investigating the case, with significant assistance provided by the Texas Attorney General’s Medicaid Fraud Control Unit.

Assistant Chief Brynn Schiess of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert Austin Wells for the Eastern District of Texas are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

PLANO, Texas – A Murphy man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Sameer Praveen Sethi, 42, was convicted of seven counts of wire fraud and one count of money laundering by a jury following a week-long trial before U.S. District Judge Sean D. Jordan on December 10, 2024.

According to information presented in court, over several years, Sethi engaged in fraud scheme targeting investors of oil and gas joint ventures.  Evidence presented at trial showed that Sethi would create a joint venture, prepare investment documents along with his staff, have his sales staff market the investments, and then the money raised from investors would be spent almost entirely on personal and business expenses.  Evidence showed the investment documents contained significant misrepresentations and false statements.  Although over $4 million was raised over the course of the joint ventures, investors received almost no returns.

"The United States Attorney's Office will continue to lead investigations into oil and gas investment schemes and other types of white collar crime that cause real harm to victims in Texas and around the nation,” said U.S. Attorney Damien M. Diggs.  “The investors in this case were misled into providing their hard-earned money to a scheme that collapsed as the defendant was living well off of the money brought in by his joint ventures.”

Sethi faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Internal Revenue Service-Criminal Investigation, Texas State Securities Board, and the FBI.

###

TYLER, Texas –A Tyler man has been sentenced to federal prison for counterfeit documents scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Juan Carlos Rodriguez, Sr., 50, pleaded guilty to fraud and misuse of visas, permits, and other documents and was sentenced to 24 months in federal prison by U.S. District Judge J. Campbell Barker on December 4, 2024.

According to information presented in court, in January 2024, Rodriguez produced and provided counterfeit permanent resident cards and social security cards for three individuals in exchange for $450. In March of 2024, Rodriguez again produced and provided fraudulent permanent resident cards and social security cards for another eight individuals in exchange for $1,200.  A federal search warrant was executed at Rodriguez’s residence where law enforcement officers recovered additional fraudulent identification documents in various stages of manufacture and the equipment used to produce the documents.  Rodriguez admitted to producing more than 25 fraudulent identification documents.

This case was investigated by Homeland Security Investigations, Texas Department of Public Safety, and Smith County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Alan R. Jackson.

###

PLANO, Texas – Three Texas women have been charged with federal violations related to a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Nicole Espinosa, also known as Short Sale Queen, 35, of Plano; Stephanie Smith, also known as Stephanie Parks, 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, were indicted by a federal grand jury on November 20, 2024, and charged with federal violations related to a mortgage fraud scheme in the Eastern District of Texas.  The two-count indictment charges them with conspiracy to commit wire fraud affecting a financial institution and conspiracy to submit false statements to a federally insured financial institution.  The defendants have been arrested and are scheduled to appear before U.S. Magistrate Judge Aileen Goldman Durrett on December 4, 2024.

According to information presented in court, beginning in 2017, Espinosa, Smith, and Baltazar, along with others, are alleged to have operated a mortgage fraud scheme using various companies, including Short Sale Queen, L.L.C.  The defendants researched and located properties that were in the pre-foreclosure short sale process and approached the homeowners about listing the properties for sale.  After signing a listing agreement with the homeowners, the defendants submitted various fraudulent documents to financial institutions and mortgage companies for the purpose of freezing or halting the foreclosure process.  Such documents included falsified purchase agreements from purported “buyers,” as well as altered “proof of funds” letters showing the “buyers” had the means to purchase the property.  Based on these representations, the financial institutions halted foreclosure proceedings, waived fees collection, and unknowingly allowed the defendants time to find a real buyer, or in other instances, cancel the deal when they could not locate a legitimate buyer.  All told, the defendants are alleged to have fraudulently submitted documents for at least 88 properties totaling over $8 million in sales, obtained at least $390,000 in commissions and processing fees, and caused at least $2.5 million in losses to these financial institutions.  

If convicted, the defendants each face up to 30 years in federal prison.

This case is being investigated by the Department of Housing and Urban Development, Federal Housing Finance Agency, and Department of Veterans Affairs.  This case is being prosecuted by Assistant U.S. Attorney Anand Varadarajan.

A federal indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

BEAUMONT, Texas – A Mexican national, illegally living in the United States, has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Francisco Santana Herrera, 42, pleaded guilty to possession with intent to distribute cocaine and was sentenced to 80 months in federal prison by U.S. District Judge Marcia A. crone on November 21, 2024.

According to information presented in court, on April 10, 2024, Herrera was stopped for speeding in a construction zone on Interstate 10 in Beaumont.  During a search of the vehicle, officers discovered approximately 16 kilos of cocaine.

This case was investigated by Beaumont Police Department, the U.S. Drug Enforcement Administration, and Homeland Security Investigations/Customs Enforcement.  This case was prosecuted by Assistant U.S. Attorney Rachel Grove.

###

BEAUMONT, Texas – An Orange, Texas, man has pleaded guilty to federal violations related to a kidnapping in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Putnam Darwin Richardson, 79, pleaded guilty to kidnapping and brandishing a firearm before U.S. Magistrate Judge Zack Hawthorn on November 20, 2024.

According to information presented in court, on July 15, 2024, a kidnapping for ransom was reported to the FBI.  The victim, a local attorney, was kidnapped at gunpoint that morning after arriving at his law office in Beaumont.  The victim’s wife received a call from the victim’s cell phone, during which the kidnapper indicated the victim was being held hostage in exchange for $1 million ransom. The kidnapper indicated he would kill the victim if the ransom was not met.  Richardson, a former client of the victim, was identified as a suspect during the investigation.  Richardson had previously been convicted of kidnapping in 1984 and was sentenced to 50 years in prison.  On July 17, 2024, Richardson was arrested at a gas station and the victim was rescued by law enforcement authorities.

Richardson faces up to life in federal prison at sentencing. The maximum sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is being investigated by the FBI, the Beaumont Police Department, the Orange Police Department, and the Jefferson County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

###

BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison in connection with a mail theft scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Charles Vernon Roberts, 27, pleaded guilty to possession of 15 or more unauthorized devices and aggravated identity theft and was sentenced to a total of 30 months in federal prison by U.S. District Judge Marcia A. Crone on November 19, 2024.

According to information presented in court, local law enforcement received complaints of stolen mail from the Tobe Hahn and South End post offices in Beaumont.  Surveillance video confirmed an individual removing items from those post office boxes.  License plate recognition software led to an apartment in Port Arthur where Roberts was successfully identified.  A search of Roberts’ apartment revealed a counterfeit postal arrow key, 35 checks/money orders, several debit/credit cards, and several pieces of opened and unopened mail not belonging to Roberts.

This case was investigated by the Port Arthur Police Department, Beaumont Police Department, and the U.S. Postal Inspection Service.  This case was prosecuted by Assistant U.S. Attorney Rachel Grove.

###

SHERMAN, Texas – An Oklahoma City, OK woman has been sentenced to 16 years in federal prison for various crimes related to an international drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Debra Lynn Mercer-Erwin, 61, was convicted at trial of money laundering; wire fraud; conspiracy to manufacture and distribute cocaine; and conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States.  Mercer-Erwin was sentenced to 192 months in federal prison by U.S. District Judge Amos Mazzant on November 20, 2024.

“Mercer-Erwin is no different than her drug dealing clients,” said U.S. Attorney Damien M. Diggs.  “She knowingly and intentionally helped them hide their identities, transport their drugs, and launder their money.  A jury of her peers convicted her for this and the punishment that she received is just.  The agents who investigated this case and the prosecutors who tried it are to be commended for their efforts.”

“The impact of this successful investigation on the aviation industry and international drug trafficking is immense. This defendant conspired with numerous transnational criminal organizations, facilitating money laundering, the trafficking of cocaine and other dangerous drugs throughout South, Central and North America using aircraft registered in her name to evade law enforcement,” said Mary Magness, Deputy Special Agent in Charge of HSI Dallas. “HSI remains committed to collaborating with federal, local and international law enforcement partners to dismantle these multi-faceted criminal networks that endanger the well-being of our citizens.”

“Our ability to trace the wire transfers and show how the illegally obtained money comingled with Mercer’s business funds are how we do business at IRS-CI. Even after the money mixed into her accounts, we could still track where it was sent and what it was used to buy,” said Lucy Tan, acting Special Agent in Charge of IRS Criminal Investigation’s Houston Field Office.  “The illegal narcotics trade is about money and we’re elite criminal financial investigators.”

According to information presented in court, between 2010 and 2020, Mercer-Erwin conspired with others to enable the distribution of cocaine in the United States by purchasing and illegally registering aircraft under foreign corporations and other individuals for export to other countries.  Non-US citizens are allowed to register an aircraft with the FAA if the aircraft is placed in a trust that is managed by a U.S. trustee. Mercer-Erwin was the owner of Wright Brothers Aircraft Title (WBAT) and Aircraft Guaranty Corporation (AGC). WBAT often served as an escrow agent for transactions involving AGC and was the designated party responsible for FAA filings related to AGC aircraft. AGC, a corporation at that time operating out of Onalaska, Texas, an east Texas town in the Eastern District of Texas, without an airport.  AGC acted as trustee to over 1,000 aircrafts with foreign owners. This allowed the foreign nationals to receive an “N” tail number for their aircrafts. The “N” tail number is valuable because foreign countries are less likely to inspect a U.S.-registered aircraft for airworthiness or force down an American aircraft. 

According to prosecutors, several of the illegally registered and exported aircraft were used by transnational criminal organizations in Colombia, Venezuela, Ecuador, Belize, Honduras, Guatemala, and Mexico to smuggle large quantities of cocaine destined for the United States.  The illicit proceeds from the subsequent drug sales were then transported as bulk cash from the United States to Mexico and used to buy more aircraft and cocaine. Aircraft purchases were typically completed by foreign nationals working for transnational criminal organizations who came to the United States with drug proceeds and purchased aircraft valued in the hundreds of thousands of dollars.

Mercer-Erwin exploited her position as trustee to circumvent U.S. laws by disguising the true identity of the foreign owners, failing to conduct due diligence as to the identity of the foreign owners, providing false aircraft locations, and falsifying and forging documents. Trial testimony revealed the investigation was initiated after aircraft filing irregularities were discovered in tandem with numerous AGC aircraft found carrying substantial amounts of cocaine. The testimony further revealed additional aircraft in AGC’s trust were not seized but found by foreign officials destroyed or abandoned near clandestine landing strips in several South American countries. Some of these wrecked or abandoned aircraft still contained muti-ton kilos of cocaine onboard, and few, if any, of the seized or destroyed aircraft were in the location they were reported to be located. When authorities confronted Mercer-Erwin as the representative of AGC, she refused to comply and each time law enforcement would seize an AGC registered aircraft laden with drugs, Mercer-Erwin attempted to distance herself from the narcotic’s trafficking by transferring ownership of the aircraft using fictitious information to conceal the nature, location, source, ownership, and control of the aircraft.

Additionally, Mercer-Erwin and co-defendants participated in a series of bogus aircraft sales transactions in order to conceal the movement of illegally obtained funds. The co-defendants would provide buyers and investors with fabricated documents and supply false representations regarding the bogus sale of an unsellable aircraft. The aircraft was unsellable because, unbeknownst to the buyers, the true owners of the aircraft had no knowledge or intention of selling the aircraft. Other bogus sales presented to buyers consisted of aircraft that was owned by a commercial airline and previously decommissioned and inoperable. None of the aircraft presented to the buyers were for sale.

The defendants would convince the buyer to place a deposit into an escrow account with WBAT, the title company owned by Mercer-Erwin, pending the completion of the sale. Once the money was placed in WBAT’s escrow account, the buyers were responsible for the interest accrued, and an escrow fee would be charged. In a typical sale, the deposit would remain in the escrow account. However, Mercer-Erwin would transfer the money from the escrow account to bank accounts controlled by the co-conspirators.

Since the aircraft was not truly for sale, the purchase of the aircraft would inevitably fall through, and the deposit would have to be returned. The co-conspirators would repeat the process by luring another buyer for the purchase of another unsellable aircraft. Each transaction would pay for the previous one, and Mercer-Erwin would receive an escrow fee ranging from $25,000 to $150,000 for her participation in the scheme.

This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and was investigated by Homeland Security Investigations (Dallas, Brownsville, Laredo, Guatemala, Colombia, Honduras, Mexico, and Transnational Criminal Investigative Units); Department of Commerce, Bureau of Industry and Security (Dallas and Houston offices); Department of Transportation Office of Inspector General (DOT-OIG); Office of Export Enforcement; Polk County Constable Precinct 1; Southeast Texas Export Investigations Group; Internal Revenue Service; Federal Aviation Administration (FAA); Estado Mayor De La Defensa Nacional Guatemala; Fuerza Aerea Guatemalteca; and Fuerza Aerea Colombiana.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Lesley Brooks.

###

SAN ANTONIO – Juan Gerardo Trevino-Chavez aka Huevo pleaded guilty in a federal court in San Antonio today to 15 counts related to his involvement in drug trafficking throughout Mexico and the United States.

Trevino-Chavez, 42, was identified as the leader of the Cartel del Noreste drug cartel (CDN), the successor cartel to Los Zetas Cartel. Trevino-Chavez was identified as the head of CDN from September 2016 until his arrest in March 2022. He pleaded guilty Tuesday to all 11 counts in an indictment filed in the Western District of Texas, including one count of conspiracy to possess with intent to distribute marijuana; one count of conspiracy to import marijuana; one count of unlawful distribution of controlled substances; one count of conspiracy to employ a person under 18 in drug operations; one count of conspiracy to possess with intent to distribute cocaine; one count of conspiracy to import cocaine; one count of conspiracy to possess with intent to distribute methamphetamine; one count of conspiracy to import methamphetamine; one count of conspiracy to possess firearms in furtherance of drug trafficking; one count of possession of a machine gun in furtherance of a drug trafficking crime; and one count of money laundering.

Trevino-Chavez additionally pleaded guilty to the four counts charged in an indictment filed in the Eastern District of Texas. In that district, he was charged with one count of conspiracy to possess with intent to distribute cocaine, one count of continuing criminal enterprise, one count of smuggling goods from the United States, and one count of conspiracy to commit money laundering.

Trevino-Chavez is scheduled to be sentenced in May 2025 and faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This prosecution included significant contributions from Homeland Security Investigations, the Drug Enforcement Administration, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the Justice Department’s Office of International Affairs.

This case resulted from the work of multiple Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

###

PLANO, Texas – Bringing an end to domestic violence is a top priority for the U.S. Department of Justice.  Domestic violence is a pervasive problem in Texas, where, in 2023, 205 Texans were killed by their intimate partners across 64 counties. The Eastern District of Texas is proud to announce the unveiling of Operation Purple Ribbon—an initiative specifically targeting domestic violence abusers for federal prosecution, announced U.S. Attorney Damien M. Diggs.

Domestic violence is a pattern of abusive behavior in any relationship that is used by one partner to gain or maintain power and control over another intimate partner.  It can happen to anyone regardless of race, age, sexual orientation, religion, sex, or gender identity. Domestic violence affects people of all socioeconomic backgrounds and education levels. Domestic violence occurs in both opposite-sex and same-sex relationships and can happen to intimate partners who are married, living together, dating, or share a child.

In an effort to prevent more domestic violence related homicides from occurring in the Eastern District of Texas, the strategy behind Operation Purple Ribbon is clear—to bring together and unite federal, state, and local resources for the sole purpose of holding domestic abusers accountable.  The initiative prioritizes prosecutions of federal firearms offenses (and other criminal offenses) that arise in domestic violence settings.  Operation Purple Ribbon is intended to be a force multiplier to the work already being by our state and local law enforcement partners, who do the heavy lifting in seeking to hold domestic abusers accountable.   

Most federal domestic violence crimes fall into two categories:

Offenses under the Gun Control Act, which prevents prohibited persons—including convicted felons, individuals previously convicted of misdemeanor crimes of domestic violence, and individuals subject to certain protective orders—from possessing firearms, or from lying to firearms dealers about their status; and

Crimes under the Violence Against Women Act, which prohibits interstate stalking, cyberstalking, and using interstate commerce to commit domestic violence or violate protective orders.

Although Operation Purple Ribbon was formally announced last week, the Eastern District of Texas has been doing impactful work in this space for over a year and has prosecuted more than 20 domestic abusers who unlawfully possessed firearms. One of those cases was John Richard Burch, Jr., an individual with a history of domestic violence, sentenced to 235 months in federal prison for drug trafficking and firearms violations.  Another case was Jorge Luis Castelan, Jr., sentenced to 57 months in federal prison for a firearms violation arising from a domestic disturbance. 

“In the Eastern District of Texas, we must remain vigilant in our efforts to hold domestic abusers accountable, particularly when that abuser is in possession of a firearm, as it is our goal to promote peace and safety in the home,” said U.S. Attorney Damien Diggs.  “We have no higher priority than keeping our communities and families safe.  Every child deserves to grow up in a safe environment and without fear from those within their homes.”

TYLER, Texas – A Leesburg, Texas, man has been sentenced to over 19 years in federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Nathan Paul Hart, 36, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.  On November 14, 2024, Hart was sentenced to 170 months for the drug offense and another 60 months for the firearms violation.  U.S. District Judge Robert W. Schroeder, III, ordered the sentences be served consecutively for a total of 230 months in federal prison.  Hart was also ordered to forfeit $250,000.

According to information presented in court, between August 2019 and August 2021, Hart conspired with others to bring methamphetamine to East Texas for distribution.  The offense involved more than 1.5 kilograms of actual methamphetamine.  On November 30, 2020, Hart and a co-defendant were involved in a traffic stop where law enforcement located approximately 2 kilograms of methamphetamine and a pistol.  Hart also admitted to sending a package containing over $22,000 to California to a co-defendant to purchase drugs.

This case was investigated by the Drug Enforcement Administration, Texas Department of Public Safety, and the U.S. Postal Inspection Service – Criminal Investigations.  This case was prosecuted by Assistant U.S. Attorney Alan Jackson.

###

TYLER, Texas – A Longview woman has been sentenced to federal prison for distributing fentanyl resulting in death in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Rebecca Diane Merkel, 43, pleaded guilty to conspiracy to possess with intent to distribute fentanyl and was sentenced to 240 months in federal prison by U.S. District Judge Jeremy D. Kernodle.

According to information presented in Court, Merkel operated what was known to drug users as the “Walmart of drugs” out of her residence located on Williams Street in Longview. There, she and her co-defendants sold various illegal narcotics, including methamphetamine and pills laced with fentanyl, in exchange for money, stolen goods, and firearms. Merkel’s customers included street-level dealers in Gregg, Rusk, and Panola counties.

On March 29, 2023, Merkel sold what were purported to be prescription pills to a victim, who died after ingesting them. On March 30, 2023, law enforcement located the victim’s body inside a vehicle in a remote area in Rusk County, where other co-defendants staged the body to avoid detection by authorities. An autopsy determined that the victim died of a fentanyl overdose.

On May 10, 2023, Merkel was arrested following a traffic stop during which officers recovered a firearm, methamphetamine, heroin, crack cocaine, and pills that were later determined to contain fentanyl, a synthetic opioid commonly used as an analgesic or anesthetic that is 100 times more potent than morphine and 50 times more potent than heroin. Merkel admitted to selling controlled substances from her residence, including in the time frame during which the victim purchased the fatal dose.

“This case illustrates the very real and tragic danger associated with fentanyl distribution in the Eastern District of Texas and elsewhere. We mourn the senseless loss of life and pray for the victim’s family in a time of such immeasurable grief. We will aggressively continue to work together with our state and local partners to bring to justice those who aim to profit from these tragedies,” said U.S. Attorney Damien M. Diggs.

In addition to Merkel, six other co-defendants were also sentenced for their respective criminal conduct related to the conspiracy:

- Timothy Wayne Yow, 58, of Longview, received a 188-month sentence;

- Jonathan Schurr, 26, of Longview, received a 46-month sentence;

- Stephanie Nichoal Kravis, 38, of Kilgore, received a 140-month sentence;

- Wesley Ryan Parker, 33, of Carthage, received a 120-month sentence;

- Daulton Wayne Anthony, 31, of Carthage, received a 71-month sentence; and

- Kylie Breaane Durand, 28, of Carthage, received a 37-month sentence.

“During the course of this investigation it has been our privilege to partner with surrounding Sheriffs’ Offices and federal agencies to provide manpower and other assistance. We appreciate our counterparts at ATF and the US Attorney’s Office for their help investigating and prosecuting violent crimes and narcotics offenses in our area,” said Panola County Sheriff Cutter Clinton. He added, “The opioid crisis often results in other criminal activity, particularly property crimes and violent crimes involving illegal firearms. By introducing fentanyl into the mix unsuspecting victims have experienced overdoses, often with fatal results. By working together, we can make our communities safer for our citizens.”

The Drug Enforcement Administration (DEA) has issued a Public Safety Alert warning Americans of the alarming increase in the lethality and availability of fake prescription pills containing fentanyl and methamphetamine.  The Public Safety Alert coincides with the launch of DEA’s One Pill Can Kill Public Awareness Campaign to educate the public of the dangers of counterfeit pills and urges all Americans to take only medications prescribed by a medical professional and dispensed by a licensed pharmacist. The campaign aims to raise public awareness of a significant nationwide surge in fake pills that are mass-produced by criminal drug networks in labs, deceptively marketed as legitimate prescription pills, and are killing unsuspecting Americans at an unprecedented rate. For more information, please visit https://www.dea.gov/onepill.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), DEA, Gregg County Sheriff's Office, Panola County Sheriff's Office, Rusk County Sheriff's Office, Longview Police Department, and Kilgore Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.

###

BEAUMONT, Texas – A Beaumont man has been sentenced for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Damon Donte Henry, 19, pleaded guilty to possession of an unregistered firearm and was sentenced to 46 months in federal prison by U.S. District Judge Michael J. Truncale on November 13, 2024.

According to information presented in court, Henry smuggled a fully loaded short-barreled AR-15 style rifle into the South Texas State Fair on March 30, 2024. Around 10:30 p.m., Beaumont police on bike patrol at the fair noticed Henry suspiciously carrying a large backpack near one of the rides. When the officers attempted to speak with Henry, he immediately ran away, discarding  the backpack. Officers quickly discovered the AR-15-style rifle and a 9mm semi-automatic handgun. After a short chase, Henry was subdued in the fair parking lot. After recovering the firearms, officers found that the rifle was unlawfully modified to be shorter than required by federal law, which mandates that rifles with an overall length less than 26 inches or a barrel less than 16 inches be registered with the ATF. The rifle was also equipped with a large capacity magazine and 26 rounds of ammunition. A federal grand jury indicted Henry on June 5, 2024.       

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Beaumont Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the FBI and prosecuted by Assistant U.S. Attorney John B. Ross.

###

BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for possessing fentanyl for distribution in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Harry Francis Lowenthal, 66, pleaded guilty to possession with intent to distribute fentanyl and was sentenced to 50 months in federal prison by U.S. District Judge Marcia A. Crone on November 12, 2024.

According to information presented in court, Lowenthal was arrested following an investigation into fentanyl distribution. During the arrest, Lowenthal was found in possession of a white powdery substance, and later admitted to possessing cocaine and fentanyl and to selling heroin.  During a search of his residence, officers discovered a firearm, $5,000.00 cash, and a small amount of suspected heroin and fentanyl along with indicators of drug trafficking, including plastic baggies, a digital scale and lactose powder commonly used to “bulk up” drugs. A lab analysis of the drugs confirmed that it consisted of approximately 19 grams of a fentanyl/heroin mix.   

“Fentanyl, even in small amounts, is a potent synthetic opioid, approximately 100 times more potent than morphine and 50 times more potent than heroin,” said U.S. Attorney Damien M. Diggs. “Today’s sentence should send a clear message that this Office, working closely with our state and federal law enforcement partners, will continue to prosecute and seek to hold accountable drug dealers who distribute this poison and exploit addictions in the Eastern District of Texas.”

This case was investigated by the Drug Enforcement Administration, the Beaumont Police Department, and the Jefferson County Sheriff’s Office. This case was prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman with assistance from the Jefferson County District Attorney’s Office.

###

BEAUMONT, Texas – A Jasper convicted felon has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Larry Buckley, 44, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and being a felon in possession of a firearm and was sentenced to 262 months in federal prison by U.S. District Judge Marcia A. Crone on November 6, 2024.

According to information presented in court, in October 2022, a joint investigation began between federal, state and local law enforcement, identifying Buckley as a source of supply for a drug trafficking organization distributing large quantities of methamphetamine in the Jasper and Lufkin areas, as well as the Sabine Parish, Louisiana area.  During the investigation, it was determined Buckley was supplying numerous individuals with large amounts of methamphetamine. Law enforcement officers were able to purchase methamphetamine and firearms directly from Buckley. Buckley has previously been convicted of various felony offenses including engaging in organized criminal activity, manufacture delivery of a controlled substance, unlawful possession of a firearm by a felon, and burglary of a habitation.  As a convicted felon, Buckley is prohibited by federal law from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; and the Sabine Parish Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Donald S. Carter.

###

BEAUMONT, Texas – A Huffman woman has been sentenced to federal prison and ordered to pay restitution for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Marcia Nickette Remedies, 71, pleaded guilty to wire fraud and was sentenced to eight months in federal prison by U.S. District Judge Michael J. Truncale on November 5, 2024.  Remedies was also ordered to pay $24,887.75 in restitution.

According to information presented in court, in May 2023, the Hardin County Sheriff’s Office contacted the FBI to request assistance in an investigation concerning Marcia Remedies, who operated as a caretaker to a 91-year-old, bed-ridden individual.  The victim reported that Remedies had unlawfully withdrew money from her account utilizing her debit card. The victim was on hospice for health-related issues and reported she hired Remedies to assist her in her home with daily affairs and personal needs.  She found Remedies through an add on Facebook and hired her around October 2022. Remedies was authorized to use the victim’s debit card for one-time purchases, such as personal need items and groceries.  Beginning in November 2022 through April 2023, numerous unauthorized automated teller withdrawals were made at various locations in Southeast Texas and Southwest Louisiana.  It was determined that Remedies made automated teller withdrawals at Delta Downs Racetrack Casino and Hotel in Vinton, Louisiana and numerous other unauthorized withdrawals at local stores that were not for the benefit of the victim. Surveillance video captured Remedies on video conducting numerous unauthorized transactions. Remedies made $24,887.75 in unauthorized withdrawals from the victim’s account.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

This case was investigated by the Hardin County Sheriff’s Office and the FBI and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

###

The Justice Department announced today that Medisca Inc. (Medisca), has agreed to pay $21.75 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) for two ingredients used in compound prescriptions. Medisca’s pricing scheme allegedly caused pharmacies that purchased those ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers’ Compensation Programs (federal health care programs).

“We will not tolerate fraudulent pricing schemes targeting health care programs that support veterans and other federal beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement demonstrates, we will hold accountable not just those who submit false claims, but all who participate in schemes designed to defraud the American taxpayers.”

Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers, such as Medisca, to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Medisca knew that compound prescription reimbursement under federal health care programs was based in part on the AWPs it reported to various price listing agencies. The United States alleged that Medisca knowingly inflated the AWPs for resveratrol (NDC No. 38779-2863) and mometasone furoate (NDC No. 38779-2413) in order to increase the reimbursement that its pharmacy customers received from the federal healthcare programs for using those Medisca ingredients.

Medisca acquired resveratrol from manufacturers for approximately $0.37 per gram. It repackaged and sold resveratrol for under $2 per gram. Medisca reported an AWP for resveratrol at $777 per gram, creating a spread of over $775 for each gram of resveratrol used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs. Medisca acquired mometasone furoate from manufacturers for under $8 per gram. It repackaged and sold that ingredient to compound pharmacies for over $1,000 per gram. Medisca reported an AWP for mometasone furoate at over $7,300 per gram, thereby creating a spread of approximately $6,300 for each gram of the ingredient used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs.  

Medisca allegedly used the high AWPs it reported and the resulting profit potential it created for its customers as an inducement to its compound pharmacy customers to purchase those ingredients. Medisca’s alleged fraudulent pricing scheme enabled its pharmacy customers to bill federal healthcare programs inflated amounts – often thousands of dollars per prescription – for compound formulations containing those ingredients.

“The systems establishing federal reimbursements for compounded pharmaceuticals should not be viewed by companies as an opportunity to artificially inflate reimbursements from federal payors such as TRICARE,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “When companies seek to manipulate the system for their own gain, the Eastern District of Texas will hold them accountable.”

“When federal healthcare programs are defrauded it hurts all Americans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to using the False Claims Act (FCA) to hold individuals and companies accountable for the impact their actions have on our critical programs. Taxpayers deserve honest pricing and assurances that the government is never overcharged.”

“This settlement sends a clear message about the unwavering commitment of the Defense Criminal Investigation Service (DCIS) to protect the integrity of TRICARE, the Department of Defense’s health care benefit program which serves our U.S. military, their family members, and military retirees,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense – Office of Inspector General, DCIS Southwest Field Office. “Health care providers who use fraudulent means to seek financial gain at the expense of TRICARE and the taxpayer will be diligently investigated and held accountable.”

The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Doug McMakin against Medisca. Mr. McMakin is a pharmacist who owned and operated a compounding pharmacy that dispensed compounded prescriptions. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. McMakin will receive $3,425,625 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. McMakin v. Medisca Inc. (EDTX).  

The resolution of these matters was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Eastern District of Texas and the Western District of Texas, with investigative support from the DCIS, U.S. Postal Service Office of Inspector General (USPS OIG) and the Department of Labor.  

The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Senior Trial Counsel Sanjay Bhambhani and Trial Attorney John Deck of the Civil Division, Assistant U.S. Attorney Mary Kruger for the Western District of Texas and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter, with investigative assistance from Special Agents Nicholas Koechig of DCIS and Timothy Jones of USPS OIG.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

Settlement

BEAUMONT, Texas – A Bridge City man has been sentenced to 10 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

On September 12, 2023, Dereck Wayne Winstead, 34, was found guilty by a jury of possession of child pornography following a trial before U.S. District Judge Marcia A. Crone.  Winstead was sentenced to 120 months in federal prison by Judge Crone on October 31, 2024.

According to information presented in court, in 2020, federal agents received two cyber tips from the National Center for Missing and Exploited Children (NCMEC) with information that an individual in Orange County, Texas, had been accessing and possessing images of child pornography. An investigation revealed the accounts accessing the child pornography were connected to Winstead.  On March 30, 2022, law enforcement officers conducted a consensual search at Winstead’s residence and located four electronic devices, including a custom-built gaming computer. A search of the custom-built gaming computer by a computer forensic analyst revealed over 300 images of child pornography including images of children under the age of 12.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by Homeland Security Investigations Beaumont Resident Agency and prosecuted by Assistant U.S. Attorneys Rachel Grove and Jonathan Lee.

###

BEAUMONT, Texas – Two Beaumont men have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Brandon Tyrone Mayberry, 22, and Daniel James Leatherwood, 21, each pleaded guilty to Hobbs Act Robbery, aiding and abetting, and brandishing a firearm during a crime of violence.

On October 31, 2024, Mayberry was sentenced to 70 months for the robbery charge and 84 months for the firearms violation for a total of 154 months in federal prison.  Leatherwood was sentenced to 33 months for the robbery charge and 84 months for the firearms violation for a total of 117 months in federal prison.  U.S. District Judge Marcia A. Crone ordered the sentences to be served consecutively in federal prison. 

According to information presented in court, in April of 2023, Leatherwood and Mayberry robbed a Game X Change store on Dowlen Road in Beaumont at gunpoint.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the FBI, the Beaumont Police Department, the Nederland Police Department, and the Liberty Police Department. This case was prosecuted by Special Assistant U.S. Attorney, Tommy L. Coleman with the cooperation of the Jefferson County District Attorney’s Office.

###

SHERMAN, Texas – Two Katy, Texas individuals have been charged with federal violations related to a mail theft scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Brevin Lee Pogue, 26, and Dayana Amador-Enamorado, 24, were named in the two-count indictment returned by a federal grand jury in the Eastern District of Texas on October 9, 2024.  They were charged with conspiracy to commit bank fraud and conspiracy to steal U.S. mail and to possess stolen U.S. mail.

According to information presented in court, in April 2023, an investigation into mail stolen in the Eastern District of Texas revealed an elaborate scheme to sell, ship, and alter stolen checks and other financial instruments across the country.  That investigation led to the arrest by the Parker Police Department of Pogue and Amador in August 2024, at an Airbnb in Colorado.

If convicted, Pogue and Amador face up to 30 years in federal prison.

This case is being investigated by the U.S. Postal Inspection Service, Fort Worth Division, Denver Division, and Houston Division; the Douglas County District Attorney’s Office in Colorado; and the Parker Police Department in Colorado.

A federal indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

BEAUMONT, Texas – A Port Arthur convicted felon has been sentenced to federal prison for firearms and drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Jacob Jermaine Alpough, 42, pleaded guilty to being a felon in possession of a firearm and possession with intent to distribute cocaine and was sentenced to 78 months in federal prison by U.S. District Judge Michael Truncale on October 28, 2024.

According to information presented in court, on October 10, 2023, law enforcement officers executed a search warrant at Alpough’s residence located on West 5th Street in Port Arthur.  At the time of the search, Alpough was the only individual at the residence. During the search, officers found two tightly wrapped packages containing approximately one kilogram of cocaine under the dining room table.  They also located a food storage container in the kitchen with approximately one kilogram of cocaine.  Additionally, there was a semi-automatic pistol laying on the floor of the living room in plain view near where Alpough had been sleeping.  The firearm had an extended magazine with 17 rounds of ammunition in it.  Alpough is a convicted felon, having three prior felony convictions in Jefferson County for possession of a controlled substance and another conviction for intoxicated assault. As a convicted felon, Alpough is prohibited by federal law from owning or possessing firearms or ammunition.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.

###

BEAUMONT, Texas – A Beaumont man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Brian Keith Murphy, 32, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Marcia A. Crone on October 28, 2024.

According to information presented in court, on August 11, 2024, law enforcement officers received a call of shots fired near a gas station on Concord Avenue in Beaumont.  As officers were being dispatched to the scene, the Beaumont Police Department was able to view a live stream of the shooting through their “Real-Time-Crime Center.”  Officers monitoring the live stream were able to witness the shooter fire multiple shots near vehicles and individuals in the parking lot.  Through coordination with officers monitoring the live stream and officers on scene, law enforcement was able to identify the vehicle the shooter had fled in.  The vehicle was stopped, and Murphy was identified as the shooter.  Two firearms were recovered from the vehicle Murphy was fleeing in, one of which was the firearm Murphy used in the shooting.  Murphy was on federal supervised release at the time for a previous conviction for being a felon in possession of a firearm.   Possessing a firearm by previously convicted felons is prohibited under federal law.

Murphy was indicted by a federal grand jury on September 4, 2024.  Murphy faces up to 15 years in federal prison at sentencing. The maximum sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and is being prosecuted by Assistant U.S. Attorney Russell James.

###

PLANO, Texas – United States Attorney Damien M. Diggs announced today that Assistant United States Attorney (AUSA) Anand Varadarajan will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA Varadarajan has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Texas, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney Diggs said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.  If you have specific information about voter discrimination, election fraud, or threats to election officials and staff, I encourage you to report it to my Office, the Civil Rights Division, or the FBI.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

United States Attorney Diggs stated that: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Varadarajan will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone numbers 972-509-1201.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 972-559-5000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

United States Attorney Diggs said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

###

BEAUMONT, Texas – A Beaumont woman has been sentenced to federal prison and ordered to pay restitution for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Michelle Denise Johnston, 42, pleaded guilty to making and subscribing a false return and aiding and assisting in the preparation of a fraudulent return and was sentenced to 15 months in federal prison by U.S. District Judge Michael J. Truncale on October 16, 2024.  Johnston was also ordered to pay $196,177.00 in restitution.

According to information presented in court, Johnston was a was a paid tax return preparer who was working at Allen and Johnston Tax Service (AJTS), in Beaumont.   In 2011, Johnston and Yolanda Allen Morris formed AJTS. Each had worked as Jackson Hewitt Office Managers at different Wal-Mart locations and decided to open their own tax preparation business. AJTS existed until Allen and Johnston split in February 2021.   Johnston requested refund amounts on customers’ tax returns that were not based on the customers’ actual income, expenses, deductions, and applicable qualifying credits.  Instead, she illegally inflated refunds based on fabricated income, expenses, deductions, and credits reported by Johnston without her customers’ knowledge. Johnston then electronically submitted the fraudulent return information to the IRS via wire.  The IRS deposited the tax refunds for Johnston’s customers with a third-party vendor. Johnston then caused the third-party vendor to pay the customers a modest tax refund she originally made known to them.  Before the third-party vendor paid the customers, Johnston deducted what was essentially a second preparation fee from her customers refund, unbeknown to her customers.  The amount of this second fee was generally the difference between the filed, larger tax refund and the modest tax refund originally made known to the customer.  In addition, Johnston signed an income tax return that contained a written declaration that it was made under penalties of perjury.  She falsely stated the amount of gross receipts knowing the statement was false.  She also fraudulently stated taxpayers’ total expenses on tax returns knowing it was false.

This case was investigated by the Internal Revenue Service-Criminal Investigations and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

###